Archive for March, 2018


March 10th, 2018 Comments off

craps front coverSTOCK MARKET STRATEGY FOR MARCH 10, 2018: The stock market is currently “overbought” in most of the internal indicators. Therefore, the market can hit a short-term top at any time. This has been a very tricky market to trade precisely, since the swings have been so punishing over the short-term when being too early with large bets. The market still has room to rally to the upside. As far as taking new long positions, the time for that was either last week or early February. Now is a time to watch and wait for the next “oversold” set-up.

Key underlying short-term timing indicators show the following:


THE BOTTOM LINE: The Fear/Greed Index is currently reading 44 or “Fear.” This is the first move out of the “Extreme Fear” area in several weeks. As far as sentiment goes, we had our chance over the past month to take long positions on weakness. The thing to do now, is wait for a short-term oversold condition in two the McClellan Oscillators (the most reliable short-term indicators) in order to take new positions for another trip into new high territory.


March 1st, 2018 Comments off

The “Fear/Greed Sentiment Index: What Emotion is Driving the Market Now?” reading has a current reading of 8 which is well into the “Extreme Fear” zone. This suggests that the market is in a buying range and not a selling range. Tactically, this means that you should either buy or hold depending on your situation.

This indicator has remained in the “Extreme Fear” area for several weeks now. This is very abnormal and suggests that we have corrected long enough in terms of time. But the charts of the major indexes don’t appear to have declined enough in terms of price.

Today’s “Extreme Fear” reading means that it’s time to start taking pilot positions if you’re under-invested in preparation for a rally to challenge the old highs. A bottom may likely appear on either Friday or Monday but actually picking that bottom will be hard to do as always. You will have sweaty palms from the fear of taking a risk here, but it’s about time for the market to get out of the “Extreme Fear” zone. It’s been here too long.

Note: This reading of 8 is the lowest of this current down cycle and may mark the bottom of this correction.